S*539 Session 110 (1993-1994)
S*0539(Rat #0157, Act #0166) General Bill, By Drummond
A Bill to amend Sections 9-1-1560 and 9-11-80, as amended, Code of Laws of
South Carolina, 1976, relating to disability retirement under the South
Carolina Retirement System and the South Carolina Police Officer's Retirement
System, so as to provide that members retiring from those systems after
October 15, 1992, at any age as a result of disability must receive a benefit
equal to at least fifteen percent of average final compensation; to amend
Section 9-1-1140, as amended, relating to establishing prior service credit
for purposes of the South Carolina Retirement System, so as to increase the
cost of establishing federal civilian service and certain graduate school
time, and to allow a member to receive service credit for up to two years of
undergraduate school under certain conditions; to amend Section 9-1-1710, as
amended, relating to establishing out-of-state service for purposes of the
South Carolina Retirement System, so as to increase the cost of establishing
such service; to amend Section 9-1-1850, as amended, relating to the option
allowing a member of the South Carolina Retirement System with at least
twenty-five years' service credit to purchase up to five additional years of
service credit, so as to provide that persons exercising the option are
eligible for employer paid health insurance at age sixty; and to repeal
Section 9-1-1840, relating to a redundant service credit option.-amended title
03/11/93 Senate Introduced, read first time, placed on calendar
without reference SJ-7
03/11/93 Senate Unanimous consent for second reading on next
legislative day SJ-7
03/11/93 Senate Unanimous consent for third reading on next
legislative day SJ-7
03/12/93 Senate Read second time SJ-2
03/16/93 Senate Read third time and sent to House SJ-15
03/17/93 House Introduced and read first time HJ-8
03/17/93 House Referred to Committee on Ways and Means HJ-8
04/22/93 House Committee report: Favorable Ways and Means HJ-10
05/06/93 House Amended HJ-48
05/06/93 House Read second time HJ-49
05/11/93 House Read third time and returned to Senate with
amendments HJ-8
05/13/93 Senate House amendment amended SJ-5
05/13/93 Senate Returned to House with amendments SJ-5
05/18/93 House Concurred in Senate amendment and enrolled HJ-5
06/10/93 Ratified R 157
06/16/93 Signed By Governor
06/16/93 Effective date 06/16/93
07/01/93 Copies available
(A166, R157, S539)
AN ACT TO AMEND SECTIONS 9-1-1560 AND 9-11-80, AS
AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO DISABILITY RETIREMENT UNDER THE SOUTH
CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA
POLICE OFFICER'S RETIREMENT SYSTEM, SO AS TO PROVIDE
THAT MEMBERS RETIRING FROM THOSE SYSTEMS AFTER
OCTOBER 15, 1992, AT ANY AGE AS A RESULT OF DISABILITY
MUST RECEIVE A BENEFIT EQUAL TO AT LEAST FIFTEEN
PERCENT OF AVERAGE FINAL COMPENSATION; TO AMEND
SECTION 9-1-1140, AS AMENDED, RELATING TO ESTABLISHING
PRIOR SERVICE CREDIT FOR PURPOSES OF THE SOUTH
CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE
COST OF ESTABLISHING FEDERAL CIVILIAN SERVICE AND
CERTAIN GRADUATE SCHOOL TIME, AND TO ALLOW A
MEMBER TO RECEIVE SERVICE CREDIT FOR UP TO TWO YEARS
OF UNDERGRADUATE SCHOOL UNDER CERTAIN CONDITIONS;
TO AMEND SECTION 9-1-1710, AS AMENDED, RELATING TO
ESTABLISHING OUT-OF-STATE SERVICE FOR PURPOSES OF THE
SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE
THE COST OF ESTABLISHING SUCH SERVICE; TO AMEND
SECTION 9-1-1850, AS AMENDED, RELATING TO THE OPTION
ALLOWING A MEMBER OF THE SOUTH CAROLINA RETIREMENT
SYSTEM WITH AT LEAST TWENTY-FIVE YEARS' SERVICE
CREDIT TO PURCHASE UP TO FIVE ADDITIONAL YEARS OF
SERVICE CREDIT, SO AS TO PROVIDE THAT PERSONS
EXERCISING THE OPTION ARE ELIGIBLE FOR EMPLOYER-PAID
HEALTH INSURANCE AT AGE SIXTY; AND TO REPEAL SECTION
9-1-1840, RELATING TO A REDUNDANT SERVICE CREDIT
OPTION.
Be it enacted by the General Assembly of the State of South Carolina:
Disability
SECTION 1. Section 9-1-1560 of the 1976 Code is amended by adding
at the end :
"(D) Notwithstanding any other provision of this section, upon
retirement for disability after October 15, 1992, at any age, a member must
receive a disability retirement allowance equal to at least fifteen percent of
his average final compensation."
Disability
SECTION 2. Section 9-11-80 of the 1976 Code is amended by adding at
the end:
"(6) Notwithstanding any other provision of this section, upon
retirement for disability after October 15, 1992, at any age, a member must
receive a disability retirement allowance equal to at least fifteen percent of
his average final compensation."
Health insurance
SECTION 3. A. Section 9-1-1850(A) of the 1976 Code, as last
amended by Act 632 of 1988, is further amended to read:
"(A) For any retirement system provided for by law in this State
the member of the retirement system, if he has at least twenty-five years of
creditable service, may elect to receive up to five years of additional service
credit as though the additional service credit were rendered by him as an
employee or member upon his paying into his retirement system the
actuarial cost as determined by regulation promulgated by the governing or
administering board of his retirement system, provided the actuarial cost
must be determined on the basis of current salary or the highest fiscal year
salary in the work career, whichever is greater. The member also shall pay
the employer and employee cost for health and dental insurance for a time
period equal to the period of service credit purchased, or until the date the
member attains age sixty, at which time the member becomes eligible for
employer-paid health and dental insurance. Any service credit purchased
under this section qualifies the member for retirement and the member must
retire within ninety days subsequent to the purchase."
B. (A) This section takes effect upon approval by the Governor and
applies with respect to payments made after December 31, 1992.
(B) Employer share payments made by employees after December 31,
1992, must be refunded upon application to the Division of Insurance
Services of the State Budget and Control Board.
Service credit
SECTION 4. The third and fourth paragraphs of Section 9-1-1140 of the
1976 Code are amended to read:
"Any member with two or more years of creditable service shall
receive additional creditable service for the period of his military service at
the rate of one year of military service for each two years of his creditable
service excluding any period of creditable military service, as long as he
was discharged or separated from the military service under conditions
other than dishonorable, and as long as he pays to the system, by a single
payment prior to his retirement or death or by another method of payment
as may be prescribed from time to time by the board, all payments to the
system he would have been required to make for the period to be so
credited had he been employed in the position he held immediately prior to
the commencement of his military leave during the period of the military
service, together with the regular interest which would have been credited
thereon from the date the contributions would have been made to the date
of payment. In the case of a member whose military service was rendered
prior to his employment by an employer the payments by the member, as
described in the foregoing sentence, must be determined on the basis of his
earnable compensation at the time he first became a member of the system.
The required employer contribution must be assumed by the State. No
member may receive credit for more than six years of military service.
Active military duty performed subsequent to December 31, 1975, may not
be considered creditable service. Any former employee of the United
States employed in this State by an employer covered by the system, and
who is currently a contributing member, may elect to receive prior service
credit for service rendered as an employee of the United States upon his
paying into the system the actuarial cost as determined by the board. The
member payment may not be less than ten percent and effective July 1,
1994, twelve percent of the earnable compensation, or the average of the
three highest consecutive fiscal years of compensation at the time of
payment, whichever is greater, for each year of service prorated for periods
of less than one year. A member who elects to receive creditable service
for federal employment may establish a portion of the service on a one-time
basis. This service may not exceed the total creditable service, exclusive of
federal service, which he would have if he remained in service until
completion of the eligibility requirements for an unreduced service
retirement allowance. In no event may any benefits payable under the
system duplicate benefits being paid under any other retirement system for
the same period of service.
A member who leaves employment to attend undergraduate or graduate
school and returns directly to employment may establish up to two years'
retirement credit by paying the actuarial cost as determined by the board.
However, the member contribution must not be less than ten percent and
effective July 1, 1994, twelve percent of current salary or the average of the
three highest consecutive fiscal years, whichever is greater, for each year
prorated for periods of less than a year."
Service credit
SECTION 5. Section 9-1-1710(2) of the 1976 Code, as last amended by
Act 64 of 1991, is further amended to read:
"(2) On or after July 1, 1975, any member may elect to become
entitled to creditable service on account of his out-of-state service by
making a special lump-sum contribution equal to ten percent and effective
July 1, 1994, twelve percent of his annual earnable compensation at the
time of payment for each year of out-of-state service and a proportionate
part thereof for a fraction of a year, provided that the earnable
compensation used as a basis for the special lump-sum contribution must
not be less than his earnable compensation in any one of the three
preceding fiscal years. A member who elects to receive creditable service
for out-of-state service may establish a portion of the service on a one-time
basis except the balance may be established in accordance with Section
9-1-80. The out-of-state service must be matched on a one-for-one basis
with in-state service. Out-of-state service may not exceed the total
creditable service, exclusive of out-of-state service which he would have if
he remained in service until completion of the eligibility requirements for
an unreduced service retirement allowance. A member who elects to
receive creditable service for his out-of-state service shall establish credit
for all service for which he is eligible, except that the service shall not
exceed the total creditable service, exclusive of out-of-state service, which
he would have if he remained in service until completion of the eligibility
requirements for an unreduced service retirement allowance. The
contribution thereafter must be treated in the same way as the regular
contributions required of a member hereunder."
Repeal
SECTION 6. Section 9-1-1840 of the 1976 Code is repealed.
Time effective
SECTION 7. This act takes effect upon approval of the Governor.
Approved the 16th day of June, 1993. |